XORTX makes board changes

Executive Summary

• XORTX Therapeutics highlights peer-reviewed research linking genetic factors to xanthine oxidase (XO) overexpression and gout, supporting its therapeutic strategy and upcoming NDA for oxypurinol.
• The company announced significant changes to its Board of Directors, appointing Krysta Davies Foss and resigning three existing members.
• XORTX issued a correction regarding a previous financing announcement, clarifying the number of prefinanced warrants issued, and provided a timeline update on its pending acquisition of a renal anti-fibrotic program from Vectus Biosystems Ltd.

Key Details

• Research & Pipeline Update:
  • Recent independent research involving 2.6 million individuals identified 410 genetic factors (149 new) associated with the inflammatory component of gout.
  • Studies link higher XO expression to hyperuricemia, sepsis, organ failure, kidney dysfunction, diabetes, polycystic kidney disease (PKD), and kidney failure.
  • CEO Dr. Allen Davidoff stated these findings support the belief that pharmacologic targeting of XO holds therapeutic potential, particularly for non-diabetic or diabetic kidney diseases.
  • The company plans to initiate a clinical trial using its commercial formulation of oxypurinol to prepare a New Drug Application (NDA) for gout therapy.
• Board Changes:
  • Appointed: Krysta Davies Foss as a director. She is CEO of Triad Strategic Services with over 25 years of experience in pharma/biotech strategy and commercialization.
  • Resigned: Bill Farley, Abigail Jenkins, and Patrick Treanor.
  • The board size is reduced to five members.
• Financing Correction (Registered Direct Offering):
  • The company corrected a disclosure error from its Oct. 29, 2025 news release regarding the closing of a $1.1-million (U.S.) registered direct offering.
  • Correction: The number of prefinanced warrants was incorrectly stated as 1,117,530. The correct number issued was 1,177,530 (a difference of 60,000 warrants).
  • Total Issuance: 572,470 common shares and 1,177,530 prefinanced warrants, totaling 1.75 million aggregate common shares and prefinanced warrants.
  • Agent Compensation: D. Boral Capital LLC received 87,500 agent warrants (exercisable at $0.69 USD/share, commencing 181 days post-issuance for 18 months) and a cash commission of $77,175 USD (7% of gross proceeds).
• M&A Update (Vectus Biosystems Ltd.):
  • XORTX is acquiring the renal anti-fibrotic therapeutic program (VB4-P5 IP) from Vectus Biosystems Ltd. (ASX-listed).
  • Status: Vectus is awaiting ASX approval on whether shareholder approval is required for the sale.
  • Timeline: Closing is scheduled no later than January 13, 2026 (90 days post-signing). XORTX and Vectus remain committed to finalizing the acquisition.

Notable Quotes

• "This pioneering into the health consequences of hyperuricemia and linkage to genetic factor in gout and autosomal dominant polycystic kidney disease sponsored by XORTX and these peer-reviewed, published research papers support our belief that pharmacologic targeting of XO holds enormous therapeutic potential, specifically where increased XO activity is associated with non-diabetic or diabetic kidney diseases." — Dr. Allen Davidoff, CEO
• "The addition of Ms. Foss adds a strong board member to the company. Her depth of strategic insight and industry leadership will be a valuable asset as the company advances its clinical programs and long-term growth strategy." — Dr. Allen Davidoff, CEO